Airline to bill Heathrow over Terminal 1 hold-up

Bosses at BAA are facing a new multi-million-pound bill in the latest fiasco to hit Heathrow.

Lufthansa, the biggest foreign airline based at the airport, is set to demand compensation from its operator after learning that its move to Terminal 1 has been set back a year.

The row will put further pressure on BAA chief executive Colin Matthews, who has faced criticism over the chaos that marred the launch of Terminal 5 earlier this year.

The German airline's European chief today blamed BAA for the "unacceptable delay" and confirmed that they would seek compensation - thought to be in the region of £200,000 for every month they are delayed.

Dr Karsten Benz, Lufthansa's vice president for Europe, said: "We see BAA is concentrating now on Terminal 5 which is state-of-the-art, but the other terminals are from the old days. We are not fine with this status.

"If people do not want to fly British Airways they should also be entitled to proper facilities at the airport.

"We have been officially told we will be moving to Terminal 1 in November but we know that it will now not be until next year. This is a major disadvantage to our customers."

Lufthansa is a founding member of Star Alliance, the world's largest network of airlines including British Midland (BMI), Air Canada, SWISS and Singapore Airlines. As part of Heathrow's overall modernisation, all Star Alliance airlines are to be located under one roof in Terminal 1 by 2012 with the largest, Lufthansa, due to move by this November.

But the German company has now learned the move will not be until next spring at the earliest. Dr Benz said: "We have opened a lounge in Terminal 1 - it is ready and already United Airlines has moved. The idea is to bring all the Star Alliance airlines together in Terminal 1. But due to various reasons BAA are not ready to move us.

"We ask, as the third largest carrier at Heathrow, that we need more precise information from BAA. Instead we are kept in the dark. The delay is unacceptable for us and has a major impact. Our customers do not feel a quality experience when they are at Heathrow.

"We want to resolve this through discussions and negotiations - we don't want to have to pursue them in the courts." He added: "The airport focuses on retail and not on the airlines. When you go through immigration, you have to find your way through perfume and cigarettes to find your boarding gate."

BAA would not comment directly, but a spokesman said: "BAA is investing £6.2 billion over the next 10 years to build new facilities and reinvigorate the airport, ensuring all passengers experience world-class facilities and service at Heathrow.

"As part of this major programme of improvements, over 50 of the airport's airlines are moving terminals between March 2008 and the end of 2009. BAA is in close consultation with our airlines and other airport partners to make the process as smooth as possible."